How do I enable plain text passwords with the telnet server in Windows 2000?

Windows 2000 uses NTLM to encrypt passwords sent from telnet
for security reasons but not all telnet clients are compatible so its possible to configure the telnet service to not require NTLM as follows:
E:\>tlntadmn
Microsoft (R) Windows 2000 (TM) (Build 2194)
Telnet Server Admin (Build 5.00.99201.1)
Select one of the following options:
0) Quit this application
1) List the current users
2) Terminate a user session ...
3) Display / change registry settings ...
4) Start the service
5) Stop the service
Type an option number [0 - 5] to select that option: 3
Select one of the following options:
0) Exit this menu
1) AllowTrustedDomain
2) AltKeyMapping
3) DefaultDomain
4) DefaultShell
5) LoginScript
6) MaxFailedLogins
7) NTLM
8) TelnetPort
Type an option number [0 - 8] to select that option: 7
Current value of NTLM = 2
Do you want to change this value ? [y/n]y
NTLM [ current value = 2; acceptable values 0, 1 or 2 ] :1
Are you sure you want to set NTLM to : 1 ? [y/n]y
setting will take effect only when Telnet Service is re-started
Select one of the following options:
0) Exit this menu
1) AllowTrustedDomain
2) AltKeyMapping
3) DefaultDomain
4) DefaultShell
5) LoginScript
6) MaxFailedLogins
7) NTLM
8) TelnetPort
Type an option number [0 - 8] to select that option: 0
Select one of the following options:
0) Quit this application
1) List the current users
2) Terminate a user session ...
3) Display / change registry settings ...
4) Start the service
5) Stop the service
Type an option number [0 - 5] to select that option: 0
E:\>net stop tlntsvr
The Telnet service is stopping.
The Telnet service was stopped successfully.
E:\>net start tlntsvr
The Telnet service is starting..
The Telnet service was started successfully.
Now the telnet service will not require NTLM authentication. You can also directly set registry value HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\TelnetServer\1.0\NTLM
to 1 for the same change.